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Friday, July 04, 2008
REPORT OF THE TECHNICAL COMMITTEE APPOINTED BY THE CABINET COMMITTEE ON FINANCE, ADMINISTRATION AND PLANNING TO INVESTIGATE THE SALE OF LR NO 209/9514
REPORT OF THE TECHNICAL COMMITTEE APPOINTED BY THE CABINET COMMITTEE ON FINANCE, ADMINISTRATION AND PLANNING TO INVESTIGATE THE SALE OF LR NO 209/9514 (THE GRAND REGENCY HOTEL)
Composition and Mandate
The Cabinet Committee on Finance and Administration, at its meeting of July 1. 2008 held at the Office of the Prime Minister, constituted a Technical Committee with the mandate to collect and review all available documents and records relating to the sale of the Grand Regency Hotel by the Central Bank of Kenya to the Libyan Arab African Investments Company Kenya Limited, and make findings and recommendations thereon, and to report back to the Cabinet Committee on July, 2nd 2008. The Committee comprised of the following;
1. Hon James Orengo Minister for Lands
2. Hon Mutula Kilonzo Minister for Nairobi Metropolitan Development
3 Hon Amos Wako Attorney-General
4 Justice (Rtd) Aaron Ringera Director-General, KACC 5. Mr Caroli Omondi Principal Administrative Secretary, GPM
The Committee was convened by the Attorney-General at his Chambers on JuIy 2, 2008 at 10,00am. The Committee selected Hon Amos Wako and Hon James Orengo as its Convener and chairman respectively, and Mr Caroli Omondi as its Secretary.
Deliberations of the Committee
The Committee invited Prof Njuguna Ndung’u, Governor of the Central Bank of Kenya, to assist with information and clarification of issues regarding the sale of the Grand Regency Hotel. Prof Ndung’u, accompanied by Mr K K Abuga, Secretary of the Board al Directors of the Central Bank of Kenya, presented several documents, made a presentation of the circumstances surrounding the sale of the Grang Regency Hotel and provided certain confirmations to the committee.
The Committee reviewed the following documents and records:
Articles of Agreement of Sale dated January, 25 1993 between Razfar Holdings Limited and four others and Parisal Investments Limited which related, inter alia, to Uhuru Highway Development Limited;
2 The Title to L.R.No. 20919514;
3 A Charge dated October 21" 1993 in favour of the Central Bank of Kenya over L. R. No.209/9514 by Uhuru Highway Development Company,
4 The Certificate of the Registration of a Mortgage dated November 18, 1993 relating to the charge in two above;
5 The Judgment of the Court of Appeal at Nairobi dated April 21, 1999 in respect of Civil Appeal No.91 of 1999 between Central Bank of Kenya (DPFB) and Uhuru Highway Development Limited and four others;
6. A Valuation Report by Lloyd Masika Limited dated February 25, 2008 an the Grand Regency Hotel on the basis of depreciated replacement cost for the sum of Sh 1,016,000,000 (forced sale value), Sh1, 278,000,000 (mortgage value) and Sh1, 754,300,000 (open market value);
7. A Valuation Report by Ark, Consultants Limited dated March 10, 2003 on the Grand Regency Hotel based on depreciated replacement cost for the sum of Sh.2,175,000,000.00;
8 A Valuation Report dated March 14 20CIS by Value Zone Limited on the Grand Regency Hotel on the basis of depreciated replacement for the sum of Sh 1,130,000,000 (forced sale value), Sh1, 290,000,000 (mortgage value) and Sh1,620,000,000 (open market value);
9 Court Order dated April 9, 2008 made by consent between Kenya Anti-Corruption Commission and Kamlesh M D Pattin' and Others in respect of Civil Snit No.1111 of 2003,
10. Agreement for Sale dated May 5, 2008 between Central Bank of Kenya and Libyan Arab African Investments Company Kenya Limited for the purchase of the Grand Regency Hotel for the sum US $45million;
11. A Transfer dated June 20, 2008 by Central Bank of Kenya to Libyan Arab African Investments Company Kenya Limited in respect of the Grand Regency Hotel;
12. Relevant Minutes of the Meetings of the Board of the Central Batik of Kenya; 13. Several correspondences;
14. Relevant Statutes and Regulations; and 15. The Registrar of Companies' file containing Incorporation documents relating to Libyan Arab African Investments Company Kenya limited.
Observations of the Committee
The Committee noted that:
1. The Board of Director of the Central Bank of Kenya at their 345"' Meeting held on April 71 2008 resolved as follows:
Management be and is hereby authorised to continue liaising with all Government Agencies involved in the Grand Regency Hotel matter, including Kenya Anti- Corruption Commission the Attorney-General nad Treasury with a view to coming up with a quick and final resolution of this outstanding matter. “………..Value the Grand Regency so as to determine, inter alia, the current market value of the Hotel.”
“…………..Management be and is hereby authorised to consult with lawyers of UHDL, on a strictly without prejudice biaswith a view to obtaining the co-operation of UHDL….. to facilitate removal of the joint Receiver Managers, appointment of a receiver by the Bank und subsequent of the Hotel . Consent Settlements in Court as appropriate....,"
Management be and is hereby authorised to source for buyers of the Hotel at a price which should not be less than the average current open market value of the Hotel, as determined by the valuations of the two valuation firms aforementioned, and reviewed by Mr Saruni and to proceed to enter into agreement for the sole of the Hotel with UHDL and the earmarked buyers".
2. The Court Order dated April 9, 2008 made by consent between Kenya Anti-Corruption Commission and Kamlesh M D Pattni and Others in respect of Civil Suit No.1111 of 2003 stated as follows: “........ Uhuru Highway Development Limited do and hereby agree to relinquish, assign, reconvey, or, otherwise transfer owner-ship and all their rights and interests in the property known as Land reference Number 20919514 together with all the improvements thereon including the Grand Regency Hotel, the fixtures thereto, moveable and immovable assets (hereiniafter referred to as 'the Assets") to the Central Bank of Kenya."
To execute any and all necessary Instruments of transfer to give effect to N above and in default thereof the Deputy Registrar of the High Court to execute such instrument (s).”
The Sale Agreement provided as follows:
“The CBK has now offered the Property to the purchaser herein at the sum of United States Dollars Forty Five Million ($45,000,000/= …..)”
The completion Date shall be last business Day following within Ninety (90) Days from the date hereof or such other date as the parties may agree in writing.”
4 The transfer dated June 20, 2008 stated as follows: “……..in consideration of a sum of Kenya Shillings One Billion Eight Hundred Fifty Million (Sh 1,850,000,000-00) paid by the Purchaser to the Chargee…. (the receipt of which sum the Chargee hereby acknowledges) the Chargee in exercise of the Statutory Power of sale….. HEREBY TRANSFERS the respective rights, title and interest of the Chargee in and to the said premises TOGETHER with all the buildings and improvements erected and now being thereon TO HOLD the same for as Lessee from the Government of the Republic of Kenya FREED AND ABSOLUTELY DISCHARGED from all principal monies interest and other money secured…..” .
The Letter of April 22, 200S from KACC to the Central Bank of Kenya stated as follows
“Upon the Instruments of Transfer being effected in favour of MIS CBK, the Ban can only dispose the property in a manner that finds favour with the law. There must be strict adherence of the provisions of the Public Procurement and Disposal Act, 2005. Besides, the Grand Regency Hotel having been recovered, pursuant to HCCC No. 111 of 2003, it is no longer open to MIS CBK to exercise its statutory power of sale".
"In view of the above, it is therefore incorrect to state that what may have changed hands was the management of the Hotel",
The Governor of the Central Bank and the Secretary to the Board of Directors of the Central and confirmed the following to the Committee:
1 That the Charge in favour of the Central Bank of Kenya or) L.R.No. 209/9S14 was an asset of the Bank. The Grand Regency Hotel is a Public Asset.
2 That the instructions of the Bank to the valuares was that the valuation should be conducted on the basis of depreciated replacement cost and not on the net present value of the business as a going concern which would include goodwill and based on current and projected financial performance of the business.
3 That neither the Attorney-General nor KACC was consulted on the sale the Grand Regency Hotel as directed by the Board of Directors of the Central Bank of Kenya.
4 That the Director-General of National Security Intelligence Service was the first person to introduce to the Central Bank the possibility of a settlement and sale of the Grand Regency Hotel and that the Director-General indicated to the Governor of the Central Bank that a Mr. Bernard Kalove, Advocate, together with Wetang’ula, Adan, Makokha & Company Advocates representing Kamlesh Pattni would contact him to discuss the matter.
5 and determined the price. He further confirmed that there were no written records of the offer and That it was Central Bank of Kenya that made an offer to sell the property to Libya Arab African Investment Company Limited acceptance.
6 That Central Bank did not conduct due diligence on the purchasers.
7 That there was external pressure to conclude the transaction.
8 That the Board of Directors of the Central Bank of Kenya has neither considered nor approved the sale.
9 That at no time did the Central Bank of Kenya meet or negotiate with any representatives of the Libyan Government in regard to the transaction.
10 That the Central Bank does not have internal regulations of its assets but is bound by the statutory requirements applicable to public entities.
11 That Central Bank of due Kenya kept no records of the interest and payable under the Charge.
12. That Wetang’ula, Adan & Makokha Advocates, even though they are on record as lawyers for Pattni and the Libyan Arab African Investment Company, drafted the Transfer for and on behalf of the Central Bank of Kenya contrary to the Sale Agreement which provided that the transfer shall be drafted by lawyers for the Central Bank.
13. That Muthoni Gichohi Advocate who drafted the Sale Agreement for and on behalf of Central Bank of Kenya is a one person firm and was appointed to the Panel of Lawyers for the Central Bank in August 2007 around the time that the Libyan Arab African Investment Company was incorporated. Until this transaction, she had done no work for the Central Bank of Kenya. Her inclusion in the Panel of Lawyers for the Central Bank of Kenya was not approved by the Attorney-General as is mandatory.
14. The Registrar of Companies' file containing the incorporation documents of the Libya Arab African Investments Company Kenya Limited do not disclose a relationship with the Libyan Government. As a matter of fact, the two Directors of the firm I described themselves as Kenyans (on incorporation in August 2008) and Libyans returns filed in May 2008) alternately. The Share Capital of the Libya Arab African Investments Company Kenya Limited is only Kshs.100, 000/=.
Deliberations of the Committee
Based on the finding that the Grand Regency Hotel is a Public Asset (having been built under the supervision of Central Bank of Kenya using public funds and having been acquired subsequently under the Consent Settlement)
a.the sale and subsequent transfer of the hotel by the Central Bank of Kenya by private treaty is in contravention of both the Privatization Act, the Public Procurement and Disposal Act and the Government Lands Act.
b) The registration by the Registrar of Titles of the Transfer by the Central Bank of Kenya to Libya Arab African Investment Company is null and void for the following reasons:
(i) The value of the transaction as stated in the Transfer was grossly understated, , did not reflect the actual sale price in the Sale Agreement and was fraudulent;
(i i)The Central Bank of Kenya already owned the property under the Court order dated April 9, 2008 made by consent between Kenya Anti-Corruption Commission and Kamlesh M. D. Pattni and Others in respect of Civil Suit No.1111 of 2003 arid therefore its declaration in the Transfer that it was exercising its statutory power of sale under the Charge was false, fraudulent and designed to deceive;
(iii)The Transfer was altered by hand at the point of registration in flagrant contravention of the established procedures in Law thereby rendering it null and void;
(i v)The Governor of the Central Bank and the Secretary to the Board of the Directors to the Central Bank had no authority whatsoever granted by the Board of Directors of the Central Bank of Kenya to execute the Transfer and affix the Seal of the Bank there unto,
(v)The Registrar of Titles and the Commissioner for Lands purported to register theTransfer following threats and intimidation by Senior Government Officers; (vi)The Transfer has not been signed by Libyan African Investment Company Limited which holds the majority share holding (993 shares out of the total 1000) of the Libyan Arab African Investment Company Kenya Limited, the purchaser; and
(vii)The appropriate stamp duty was not paid in respect of the Transfer.
(C)The advice by the Public Procurement and Oversight Board that the Central Bank of Kenya could dispose of the Grand Regency Hotel outside the Public Procurement and Disposal Act was based on false representations made by the Bank and on a deliberate misapprehension of the Law.
Consequently it is recommended that:
The Government of Kenya through the Ministry of Lands immediately registers a caveat on the Title to LR No.209/9514 (the Grand Regency Hotel) under Section 65
(i) (f) of the Registration of Titles Act; The Registrar of Titles be and is hereby directed to immediately recall and cancel the Transfer dated June 20, 2008 in respect or L R. No 209/0514; The Central Bank of Kenya be and is hereby directed to cancel the Sale Agreement dated May 5, 2008 in respect of L. R. No, 209/9514; The Central Bank of Kenya be and is hereby directed to fully comply with the provisions of the Court Order dated April 9, 2008 made by consent between Kenya Anti-Corruption Commission and Kamlesh M. D. Pattni and Others in respect of Civil Suit No.1111 of 2003, and accordingly register forthwith the Title to L.R. No. 209/9514 in its name; and
conduct of all Public Officers in the Office of the President, Ministry of Finance, Ministry of Lands and the Central Bank of Kenya with regard to the Grand Regency Hotel purported sale and transfer be investigated and appropriate action taken.
Pending the completion of the investigations, the Minister for Finance, the Director General of the National Security Intelligence Service, the Governor al the Central Bank of Kenya and the Secretary to the Board of Directors of the Central Bank of Kenya be directed to step aside.
Dated July 2, 2003. Nairobi Hon James Orengo Hon Amos Wako Minister for Lands Attorney-General
Composition and Mandate
The Cabinet Committee on Finance and Administration, at its meeting of July 1. 2008 held at the Office of the Prime Minister, constituted a Technical Committee with the mandate to collect and review all available documents and records relating to the sale of the Grand Regency Hotel by the Central Bank of Kenya to the Libyan Arab African Investments Company Kenya Limited, and make findings and recommendations thereon, and to report back to the Cabinet Committee on July, 2nd 2008. The Committee comprised of the following;
1. Hon James Orengo Minister for Lands
2. Hon Mutula Kilonzo Minister for Nairobi Metropolitan Development
3 Hon Amos Wako Attorney-General
4 Justice (Rtd) Aaron Ringera Director-General, KACC 5. Mr Caroli Omondi Principal Administrative Secretary, GPM
The Committee was convened by the Attorney-General at his Chambers on JuIy 2, 2008 at 10,00am. The Committee selected Hon Amos Wako and Hon James Orengo as its Convener and chairman respectively, and Mr Caroli Omondi as its Secretary.
Deliberations of the Committee
The Committee invited Prof Njuguna Ndung’u, Governor of the Central Bank of Kenya, to assist with information and clarification of issues regarding the sale of the Grand Regency Hotel. Prof Ndung’u, accompanied by Mr K K Abuga, Secretary of the Board al Directors of the Central Bank of Kenya, presented several documents, made a presentation of the circumstances surrounding the sale of the Grang Regency Hotel and provided certain confirmations to the committee.
The Committee reviewed the following documents and records:
Articles of Agreement of Sale dated January, 25 1993 between Razfar Holdings Limited and four others and Parisal Investments Limited which related, inter alia, to Uhuru Highway Development Limited;
2 The Title to L.R.No. 20919514;
3 A Charge dated October 21" 1993 in favour of the Central Bank of Kenya over L. R. No.209/9514 by Uhuru Highway Development Company,
4 The Certificate of the Registration of a Mortgage dated November 18, 1993 relating to the charge in two above;
5 The Judgment of the Court of Appeal at Nairobi dated April 21, 1999 in respect of Civil Appeal No.91 of 1999 between Central Bank of Kenya (DPFB) and Uhuru Highway Development Limited and four others;
6. A Valuation Report by Lloyd Masika Limited dated February 25, 2008 an the Grand Regency Hotel on the basis of depreciated replacement cost for the sum of Sh 1,016,000,000 (forced sale value), Sh1, 278,000,000 (mortgage value) and Sh1, 754,300,000 (open market value);
7. A Valuation Report by Ark, Consultants Limited dated March 10, 2003 on the Grand Regency Hotel based on depreciated replacement cost for the sum of Sh.2,175,000,000.00;
8 A Valuation Report dated March 14 20CIS by Value Zone Limited on the Grand Regency Hotel on the basis of depreciated replacement for the sum of Sh 1,130,000,000 (forced sale value), Sh1, 290,000,000 (mortgage value) and Sh1,620,000,000 (open market value);
9 Court Order dated April 9, 2008 made by consent between Kenya Anti-Corruption Commission and Kamlesh M D Pattin' and Others in respect of Civil Snit No.1111 of 2003,
10. Agreement for Sale dated May 5, 2008 between Central Bank of Kenya and Libyan Arab African Investments Company Kenya Limited for the purchase of the Grand Regency Hotel for the sum US $45million;
11. A Transfer dated June 20, 2008 by Central Bank of Kenya to Libyan Arab African Investments Company Kenya Limited in respect of the Grand Regency Hotel;
12. Relevant Minutes of the Meetings of the Board of the Central Batik of Kenya; 13. Several correspondences;
14. Relevant Statutes and Regulations; and 15. The Registrar of Companies' file containing Incorporation documents relating to Libyan Arab African Investments Company Kenya limited.
Observations of the Committee
The Committee noted that:
1. The Board of Director of the Central Bank of Kenya at their 345"' Meeting held on April 71 2008 resolved as follows:
Management be and is hereby authorised to continue liaising with all Government Agencies involved in the Grand Regency Hotel matter, including Kenya Anti- Corruption Commission the Attorney-General nad Treasury with a view to coming up with a quick and final resolution of this outstanding matter. “………..Value the Grand Regency so as to determine, inter alia, the current market value of the Hotel.”
“…………..Management be and is hereby authorised to consult with lawyers of UHDL, on a strictly without prejudice biaswith a view to obtaining the co-operation of UHDL….. to facilitate removal of the joint Receiver Managers, appointment of a receiver by the Bank und subsequent of the Hotel . Consent Settlements in Court as appropriate....,"
Management be and is hereby authorised to source for buyers of the Hotel at a price which should not be less than the average current open market value of the Hotel, as determined by the valuations of the two valuation firms aforementioned, and reviewed by Mr Saruni and to proceed to enter into agreement for the sole of the Hotel with UHDL and the earmarked buyers".
2. The Court Order dated April 9, 2008 made by consent between Kenya Anti-Corruption Commission and Kamlesh M D Pattni and Others in respect of Civil Suit No.1111 of 2003 stated as follows: “........ Uhuru Highway Development Limited do and hereby agree to relinquish, assign, reconvey, or, otherwise transfer owner-ship and all their rights and interests in the property known as Land reference Number 20919514 together with all the improvements thereon including the Grand Regency Hotel, the fixtures thereto, moveable and immovable assets (hereiniafter referred to as 'the Assets") to the Central Bank of Kenya."
To execute any and all necessary Instruments of transfer to give effect to N above and in default thereof the Deputy Registrar of the High Court to execute such instrument (s).”
The Sale Agreement provided as follows:
“The CBK has now offered the Property to the purchaser herein at the sum of United States Dollars Forty Five Million ($45,000,000/= …..)”
The completion Date shall be last business Day following within Ninety (90) Days from the date hereof or such other date as the parties may agree in writing.”
4 The transfer dated June 20, 2008 stated as follows: “……..in consideration of a sum of Kenya Shillings One Billion Eight Hundred Fifty Million (Sh 1,850,000,000-00) paid by the Purchaser to the Chargee…. (the receipt of which sum the Chargee hereby acknowledges) the Chargee in exercise of the Statutory Power of sale….. HEREBY TRANSFERS the respective rights, title and interest of the Chargee in and to the said premises TOGETHER with all the buildings and improvements erected and now being thereon TO HOLD the same for as Lessee from the Government of the Republic of Kenya FREED AND ABSOLUTELY DISCHARGED from all principal monies interest and other money secured…..” .
The Letter of April 22, 200S from KACC to the Central Bank of Kenya stated as follows
“Upon the Instruments of Transfer being effected in favour of MIS CBK, the Ban can only dispose the property in a manner that finds favour with the law. There must be strict adherence of the provisions of the Public Procurement and Disposal Act, 2005. Besides, the Grand Regency Hotel having been recovered, pursuant to HCCC No. 111 of 2003, it is no longer open to MIS CBK to exercise its statutory power of sale".
"In view of the above, it is therefore incorrect to state that what may have changed hands was the management of the Hotel",
The Governor of the Central Bank and the Secretary to the Board of Directors of the Central and confirmed the following to the Committee:
1 That the Charge in favour of the Central Bank of Kenya or) L.R.No. 209/9S14 was an asset of the Bank. The Grand Regency Hotel is a Public Asset.
2 That the instructions of the Bank to the valuares was that the valuation should be conducted on the basis of depreciated replacement cost and not on the net present value of the business as a going concern which would include goodwill and based on current and projected financial performance of the business.
3 That neither the Attorney-General nor KACC was consulted on the sale the Grand Regency Hotel as directed by the Board of Directors of the Central Bank of Kenya.
4 That the Director-General of National Security Intelligence Service was the first person to introduce to the Central Bank the possibility of a settlement and sale of the Grand Regency Hotel and that the Director-General indicated to the Governor of the Central Bank that a Mr. Bernard Kalove, Advocate, together with Wetang’ula, Adan, Makokha & Company Advocates representing Kamlesh Pattni would contact him to discuss the matter.
5 and determined the price. He further confirmed that there were no written records of the offer and That it was Central Bank of Kenya that made an offer to sell the property to Libya Arab African Investment Company Limited acceptance.
6 That Central Bank did not conduct due diligence on the purchasers.
7 That there was external pressure to conclude the transaction.
8 That the Board of Directors of the Central Bank of Kenya has neither considered nor approved the sale.
9 That at no time did the Central Bank of Kenya meet or negotiate with any representatives of the Libyan Government in regard to the transaction.
10 That the Central Bank does not have internal regulations of its assets but is bound by the statutory requirements applicable to public entities.
11 That Central Bank of due Kenya kept no records of the interest and payable under the Charge.
12. That Wetang’ula, Adan & Makokha Advocates, even though they are on record as lawyers for Pattni and the Libyan Arab African Investment Company, drafted the Transfer for and on behalf of the Central Bank of Kenya contrary to the Sale Agreement which provided that the transfer shall be drafted by lawyers for the Central Bank.
13. That Muthoni Gichohi Advocate who drafted the Sale Agreement for and on behalf of Central Bank of Kenya is a one person firm and was appointed to the Panel of Lawyers for the Central Bank in August 2007 around the time that the Libyan Arab African Investment Company was incorporated. Until this transaction, she had done no work for the Central Bank of Kenya. Her inclusion in the Panel of Lawyers for the Central Bank of Kenya was not approved by the Attorney-General as is mandatory.
14. The Registrar of Companies' file containing the incorporation documents of the Libya Arab African Investments Company Kenya Limited do not disclose a relationship with the Libyan Government. As a matter of fact, the two Directors of the firm I described themselves as Kenyans (on incorporation in August 2008) and Libyans returns filed in May 2008) alternately. The Share Capital of the Libya Arab African Investments Company Kenya Limited is only Kshs.100, 000/=.
Deliberations of the Committee
Based on the finding that the Grand Regency Hotel is a Public Asset (having been built under the supervision of Central Bank of Kenya using public funds and having been acquired subsequently under the Consent Settlement)
a.the sale and subsequent transfer of the hotel by the Central Bank of Kenya by private treaty is in contravention of both the Privatization Act, the Public Procurement and Disposal Act and the Government Lands Act.
b) The registration by the Registrar of Titles of the Transfer by the Central Bank of Kenya to Libya Arab African Investment Company is null and void for the following reasons:
(i) The value of the transaction as stated in the Transfer was grossly understated, , did not reflect the actual sale price in the Sale Agreement and was fraudulent;
(i i)The Central Bank of Kenya already owned the property under the Court order dated April 9, 2008 made by consent between Kenya Anti-Corruption Commission and Kamlesh M. D. Pattni and Others in respect of Civil Suit No.1111 of 2003 arid therefore its declaration in the Transfer that it was exercising its statutory power of sale under the Charge was false, fraudulent and designed to deceive;
(iii)The Transfer was altered by hand at the point of registration in flagrant contravention of the established procedures in Law thereby rendering it null and void;
(i v)The Governor of the Central Bank and the Secretary to the Board of the Directors to the Central Bank had no authority whatsoever granted by the Board of Directors of the Central Bank of Kenya to execute the Transfer and affix the Seal of the Bank there unto,
(v)The Registrar of Titles and the Commissioner for Lands purported to register theTransfer following threats and intimidation by Senior Government Officers; (vi)The Transfer has not been signed by Libyan African Investment Company Limited which holds the majority share holding (993 shares out of the total 1000) of the Libyan Arab African Investment Company Kenya Limited, the purchaser; and
(vii)The appropriate stamp duty was not paid in respect of the Transfer.
(C)The advice by the Public Procurement and Oversight Board that the Central Bank of Kenya could dispose of the Grand Regency Hotel outside the Public Procurement and Disposal Act was based on false representations made by the Bank and on a deliberate misapprehension of the Law.
Consequently it is recommended that:
The Government of Kenya through the Ministry of Lands immediately registers a caveat on the Title to LR No.209/9514 (the Grand Regency Hotel) under Section 65
(i) (f) of the Registration of Titles Act; The Registrar of Titles be and is hereby directed to immediately recall and cancel the Transfer dated June 20, 2008 in respect or L R. No 209/0514; The Central Bank of Kenya be and is hereby directed to cancel the Sale Agreement dated May 5, 2008 in respect of L. R. No, 209/9514; The Central Bank of Kenya be and is hereby directed to fully comply with the provisions of the Court Order dated April 9, 2008 made by consent between Kenya Anti-Corruption Commission and Kamlesh M. D. Pattni and Others in respect of Civil Suit No.1111 of 2003, and accordingly register forthwith the Title to L.R. No. 209/9514 in its name; and
conduct of all Public Officers in the Office of the President, Ministry of Finance, Ministry of Lands and the Central Bank of Kenya with regard to the Grand Regency Hotel purported sale and transfer be investigated and appropriate action taken.
Pending the completion of the investigations, the Minister for Finance, the Director General of the National Security Intelligence Service, the Governor al the Central Bank of Kenya and the Secretary to the Board of Directors of the Central Bank of Kenya be directed to step aside.
Dated July 2, 2003. Nairobi Hon James Orengo Hon Amos Wako Minister for Lands Attorney-General
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